By adopting a resolution for 'Buy back scheme', the Indian Corporate World get authorisation to play the market. It is implemented most whimsically and NOT in the spirits of the resolution. Take the example of one taken by DLF Ltd - authorised to buy back upto 2.2 crores share & upto rs. 1100 crores subject to price limit of rs. 600/-. On the first day, the Directors bought back just 2,50,000 shares @ rs. 304/19, next week 7,55,888 @ rs. 265/58 & following week a token 5,000 shares @ rs. 210/-. Eventually, price went below rs. 200/- & they did NOT cared to mope out the balance quantity available below 1/3rd of the cut off price of rs. 600/- showing ABSOLUTE LACK OF FAITH IN THEIR OWN COMPANY !
Panacea Biotech has recently completed its buy back scheme & deserved 10 out of 10 ; they BOUGHT BACK the maximum quantity of 55,92,000 shares spending 85.76% of the authorised amount in the process.
I wish all follow this example of adopting a Resolution & carrying it out in TRUE SPIRIT unless market dynamics decide otherwise.
No comments:
Post a Comment